Hyperliquid Policy Center and trade[XYZ] Petition CFTC for US Energy Perpetuals

The Hyperliquid Policy Center (HPC) and trade[XYZ] asked the Commodity Futures Trading Commission (CFTC) to establish a regulated US market for energy perpetual contracts. The joint comment letter, filed on Wednesday, August 26, covers contracts tied to WTI crude, Brent crude, and Henry Hub natural gas.

If approved, the request would provide American oil and gas traders with a domestic venue to hedge crude and natural gas exposure around the clock, including during nights and weekends when conventional futures markets are closed.

The Push for 24/7 Energy Derivatives

HPC is an independent research and advocacy organization connected to the Hyperliquid Foundation, while trade[XYZ] is a HIP-3 deployer operating traditional-asset perpetual markets on Hyperliquid. Launched in October 2025, trade[XYZ] has reportedly handled over $500 billion in cumulative volume.

In May, the CFTC cleared the first perpetual contracts to trade as futures on a US exchange, though limited to crypto underliers. Following a June public request for input on perpetuals referencing storable, physically delivered commodities, HPC and trade[XYZ] positioned energy as the next logical asset class.

Citing the February Oil Shock

The joint letter highlighted the events of February 28, when Middle East conflict interrupted regional energy exports while US oil futures were closed. Brent oil prices approached $120 per barrel by March 9, causing jet fuel prices to double rapidly. Oil-linked perpetuals continued trading on Hyperliquid throughout the closure, with onchain activity capturing roughly two-thirds of the price movement between Friday's close and Sunday's reopening.

According to the letter, standard WTI futures move in 1,000-barrel lots, representing roughly $70,000 in notional value at recent prices, whereas the median off-hours trade on trade[XYZ]'s crude market is approximately $1,300. An HPC study indicated that in nearly 75% of sampled weekend closures, the crude perpetual's price was closer to the benchmark's Sunday reopening than to its Friday close.

Five-Step Proposal to the CFTC

The authors asked the CFTC to execute five steps without requiring new legislation:

• Adopt a technology-neutral framework for 24/7 trading.
• Confirm that exchanges and clearinghouses can operate continuously under existing Core Principles.
• Clarify the definition of a "business day" for continuously operating markets.
• Recognize stablecoins and tokenized collateral as eligible margin.
• Confirm that regulated venues may utilize onchain rails for clearing and settlement.

Wider US Market Context

HPC previously urged the SEC and CFTC to harmonize the classification of perpetuals based on economic structure rather than underlying asset. President Donald Trump stated that CFTC Chairman Michael Selig was working to bring Hyperliquid onshore compliantly, following which HYPE rose by 40%. The token traded at approximately $82.12 on Wednesday according to CoinMarketCap.

Meanwhile, traditional exchanges have pushed back. CME sued the CFTC in June regarding its decision to permit perpetual futures, and established exchanges like CME and ICE have argued that Hyperliquid should register with the agency.